Tag: Economics

“Last October, due to an early frost, the average price for a pumpkin increased by 10 percent compared to the average pumpkin price in previous Halloween seasons. As a result, the quantity demanded county-wide decreased from 2 million to 1.5 million.”  Based on this statement, the ……..

Select ONE answer:

1. demand curve for pumpkins shifted rightward.
2. demand for pumpkins is elastic.
3. demand for pumpkins is unit elastic.
4. demand for pumpkins is inelastic.

What is the implication for firms of changes in economic growth?

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This is multiple choice question is suitable for Economics KS5 classes.

The answer is 2

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The closer the substitutes for a good, the ………

Select ONE answer:

1. larger the proportion of income that is spent on the good.
2. smaller the degree of substitutability between the goods.
3. more elastic is the demand for the good.
4. less elastic is the demand for the good.

What is the implication for firms of changes in inflation?

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This is multiple choice question is suitable for Economics KS5 classes.

The answer is 3

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Which goods have more elastic demands?

Select ONE answer:

1. goods which are necessities
2. goods with few substitutes
3. goods whose purchase represents a small percentage of income
4. goods with many substitutes

What is the implication for firms of changes in unemployment?

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This is multiple choice question is suitable for Economics KS5 classes.

The answer is 4

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To maximise its revenue……?

Select ONE answer:

1. a firm facing inelastic demand should always raise its price. 
2. a firm should always charge the highest price possible regardless of the elasticity of demand.
3. a firm facing elastic demand should always raise its price.
4. None of the above answers is correct.

What is the implication for firms of changes in taxation?

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This is multiple choice question is suitable for Economics KS5 classes.

The answer is 1

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Demand is inelastic when a price ________ results in total revenue ________  ?

Select ONE answer:

1. fall; increasing
2. rise; decreasing
3. rise, increasing
4. fall, remaining the same

What is the implication for firms of changes in exchange rates?

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This is multiple choice question is suitable for Economics KS5 classes.

The answer is 3

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Demand curves with which of the following shapes will have constant elasticities at every point?

Select ONE answer:

1. demand curves that are perfectly horizontal lines
2. demand curves that are perfectly vertical lines
3. demand curves that are rectangular hyperbolas
4. all of the above

What is the implication for firms of changes in interest rates?

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This is multiple choice question is suitable for Economics KS5 classes.

The answer is 4

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Demand is price inelastic if a relatively ________ price increase leads to a relatively ________ in the quantity demanded.

Select ONE answer:

1. small; large increase
2. small; large decrease
3. large; small decrease
4. large; small increase

What is meant by the “Specialisation”?

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This is multiple choice question is suitable for Economics KS5 classes.

The answer is 3

This work is licensed under a Creative Commons Attribution 4.0 International License.